Website development company Wix.com is preparing to cut approximately 1,000 positions in the coming months, representing about 20% of its total workforce. This marks the largest round of layoffs in the company's history. The announcement comes just one week after Wix reported first-quarter financial results that fell significantly short of market expectations, causing its stock price to plummet by roughly one-third in the subsequent trading session.
For the first quarter of fiscal 2026, Wix reported revenue of $541 million, a 14% year-over-year increase but $2.87 million below analyst consensus. Adjusted earnings per share were $0.68, missing the consensus estimate by $0.54. This is the latest in a series of negative developments for the company. Against a backdrop of growing market concerns about the risks of "AI disruption," its stock has declined nearly 50% since the beginning of the year.
An analyst at Ten Cent Capital commented, "Regarding AI, some things are almost certain. Basic web design is clearly one of the most easily disrupted areas. For a $20 subscription to a service like Claude, you can create a fully functional, customized website—something that often used to cost thousands of dollars and take weeks or even months." The analyst further noted, "The 'vibecoding' tool Base44, which Wix acquired for $80 million, has shown exceptionally strong Annual Recurring Revenue performance, surging from $59 million to $150 million by the end of 2025. Such explosive growth does exist. However, the issue is that Wix has distorted reality by packaging Base44 as part of its own moat, when in fact, it is just another AI competitor."
In fact, as early as last year, Bank of America strategists listed Wix among 26 companies at the highest risk from AI impact. The company's stock had already fallen more than 51% in 2025. Wix is not alone; tax and financial software maker Intuit is another tech company that has announced significant layoffs during the AI boom. The company stated last Wednesday it would reduce its full-time workforce by 17%. Based on Intuit's last reported total of 18,200 employees, this cut will affect over 3,000 people. The maker of QuickBooks and TurboTax has seen its stock price suffer heavy losses this year, in line with the overall downturn in the software sector. Data shows Intuit's stock is down more than 50% year-to-date, while the S&P 500 index has gained over 9% in the same period.
Additionally, ZoomInfo and content delivery network provider Cloudflare announced earlier this month they would each cut 20% of their staff. Cisco stated this month it would eliminate nearly 4,000 positions this quarter, representing less than 5% of its workforce. Large technology companies are also advancing layoffs, though the larger reason is often to streamline costs to free up more capital for investment in AI.
Meta formally initiated its plan to cut 8,000 jobs globally last week, representing 10% of its worldwide workforce. In a memo to employees dated April 23, Meta indicated plans for a 10% reduction to boost efficiency and offset the company's high expenditures on artificial intelligence. Meta is not an isolated case. Microsoft, around the same time, introduced the first voluntary departure program in its 51-year history, targeting U.S. employees whose combined age and years of service total 70 or more. Approximately 7% of its U.S. workforce, or about 9,000 people, were eligible. Microsoft had already cut over 15,000 jobs in 2025. Meanwhile, its subsidiary LinkedIn announced another round of layoffs affecting about 5% of staff, or nearly 900 people, impacting engineering, product, and marketing teams, even as the company posted a 12% year-over-year revenue increase in its latest quarter.
Amazon's AI transformation is more aggressive. Since early 2025, Amazon has cumulatively laid off more than 30,000 corporate employees, with cuts primarily concentrated in non-core business units, leaving frontline roles in e-commerce fulfillment and AWS cloud services largely unaffected. Concurrent with the layoffs, Amazon has mandated that employees follow an "AI-first" principle in nearly all workflows, including writing code, product design, and supply chain analysis. The company plans to invest approximately $200 billion in AI infrastructure by 2026. However, this forced pace has sparked internal backlash, with employees reporting that immature AI tools are actually increasing the workload for manual error correction.
According to Layoffs.fyi, global tech industry layoffs have exceeded 103,000 so far in 2026, approaching the roughly 124,000 recorded for all of 2025. In the first-quarter 2026 tech layoff wave, driven by pressure from productivity tools and Wall Street, the accelerated shift from human labor to AI-powered automation has become an irreversible structural trend.
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